MIKE AKHIGBE, OIL SMUGGLING, AND THE NAVY:
HOW HE OCHESTRATED THE LOSS OF OVER N38bn WORTH OF PETROLEUM PRODUCTS THROUGH BUNKERERING IN SIX MONTHS IN 1996
INTRODUCTION
Mike Akhigbe would not have been a household name if he hadn’t been to the military. Akhigbe was a member of the elite class on the Nigerian Defense Academy (NDA)- Course 3. According to military sources, Course 3 meaning the third set of cadet officers to pass through the NDA are the most political ever in the history of Nigerian military. His mates are David Mark, Tunde Ogbeha, Gen Malu, Gen Olanrewaju, late Abdukarim Adisa, Rear Admiral AOS Okoja just to mention a few.
Of all the names mentioned above, Akhigbe, Mark, Ogbeha, Adisa and Olarenwaju spent most of their military career as political appointees. Heir set is also believed to be the most dreadful. When I started the Bunkering investigation, I received several warnings from Naval officers to because of people involved.
During my investigation, I called Mike Akhigbe to ask him questions on his role as Chief of Naval Staff on the worst fuel crisis in the history of Nigeria under his watch. The soft-spoken Akhigbe referred me to the Navy. Initially he told me to call back that Akhigbe was not at home, when I called back, he referred me to the Nigerian Navy on getting to the Navy, I knew he had spoken to them but I was determined to do my job. I was held at the Navy headquarters for over four hours, begging me to drop the story. I argued that I had to do my job but I had to pretend to agree with them when I eavesdropped that the Director of Naval Intelligence requested they bring me to his office. Then I promised to hand over the document to Admiral Ogohi in person. Ogohi then was the Chief of Defense Staff a party in the 1996 bunkering scandal. It was then they allowed me to go. What they did not know was that the document was with me in the office all along. Below is the report of my investigation on what happened in Nigeria between June and December 1996.
STEALING THE WEALTH OF NIGERIA
Shortly after his inauguration in May 29, 1999, Olusegun Obasanjo presented what he thought as the best democracy dividend to the Nigerian masses. The price of petroleum products were adjusted upwards from its former 26 naira per liter to 40 naira per liter. The decision was greeted with public outcry. This led to nationwide industrial action by the Nigeria Labor Congress, lasting 8 days and leaving 14 people dead.
To political observers, the price increase did not come as a surprise. The events that happened some three months before the election had given most Nigerians the warning that prices of petroleum products may be hiked. At least that has been the way successive governments in Nigeria come before increasing petroleum product prices. Nigerians were greeted with the shortage of petroleum products early 1999, the shortage ran into the election period. No one could come up with an explanation as to what caused the shortage of fuel supply.
The then Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Mr. Gaius Obaseki in a meeting with the Independent Oil Marketers accused them of creating artificial scarcity, by diverting the products to neighboring countries. According to him, the money they make from such deal is blood money. That petroleum products meant for domestic consumption are diverted to neighboring countries is no more news and not a new thing. This has been on for a long time and it is still on.
Governments in Nigeria have been rationalizing increase in fuel prices to checking illegal bunkering and oil smuggling, but in actual fact, it has made oil barons wealthier impoverish the poor masses of Nigeria than check it. Oil subsidy removal started with General Ibrahim Babangida in the late 80s when his government increased the price of petroleum products from 42 kobo per liter to 70 kobo all in a bid to check smuggling. Between 1986 and 1994 the price of petroleum products jumped to 15 naira per liter. Today it is 97 naira per liter while the smuggling and illegal bunkering activities abate.
Investigation revealed that top military officers and some multi-national oil companies couldn’t wash their hands clean of the illegal bunkering and smuggling of petroleum products to neighboring countries.
1996 was a year many Nigerians will not forget in a hurry. Between June and December Nigerians faced severe shortage of petroleum products; in spite of the fact that the Petroleum Products Marketing Company, a subsidiary of the NNPC loaded vessels for delivery in various parts of the country. No one could explain why and where the vessels disappear on the high sea between Port Harcourt, Warri and Lagos. It was a puzzle the Petroleum ministry under Dan Etete could not phantom.
Nigeria, during that period, was thrown into crisis. The scarcity, according to PPMC sources led to the importation of the adulterated fuel. According to our PPMC source, ” when we could not ascertain the cause of the scarcity, in spite of the fact that vessels were loaded; to put the situation under control, we had to resort to importation of fuel,” the source explained. Contractors took advantage of this to import adulterated fuel, which caused kerosene explosion killing many and leaving many families homeless.
While most Nigerians groan under the hardship, a clique of Nigerians smile to the bank for the money they made from diversion of petroleum products to neighboring countries.
In 2001 the Nigerian Senate committee on Petroleum investigated through open hearing to determine the cause of the fuel crisis of 1996. After several sittings, the committee could not come up with the answer to the problem. However, some top military officers, particularly the Nigerian Navy were behind the petroleum crisis of 1996.
According to investigation, the Chief of Operations of the Nigerian Navy, Rear Admiral AOS Okoja, in June 1996 discovered that some Nigerians were illegally diverting petroleum products meant for supply in Nigeria to neighboring West African countries.
According to a document made available to me, Admiral Okoja wrote a memorandum (ref NHQ 011/67/OPS/Vol. 111/60), dated 19 August 1996: to the Chief of Naval Staff (CNS) Admiral Akhigbe. According to the document, the revelation became manifest as a result of the installation of Operational Analysis tool for analyzing returns from field. Within the period of June-July 1996, 40,800 MT of AGO (kerosene) and 5,470MT of DPK (diesel) were confirmed diverted. All the Chief of Naval Staff (CNS) did was to warn them and ordered the release of the vessels.
After the report of August, and the ”stern” warning issued by the CNS, the illegal diversion still continued. In the month of September, seven vessels that loaded petroleum products were diverted abroad. A total of 7,500 and 5,000 of AGO and DPK were respectively involved. The Chief of Operations (COP) Rear Admiral Okoja in a memo ref also reported this to the CNS: NHQ 011/67/OPS/Vol. IV/28 dated 21 November 1996.
In the month of October, sixteen vessels that loaded petroleum products with a total of 25,800 MT, 8,700MT and 28,600MT of PMS (petrol), DPK and AGO were diverted. This time, two vessels were specifically said to be notorious, MT Raider and Orion. The report indicted these operators within the movement industry. The report also stated that the B FOC East/NNS Okemini was directed to monitor and escort MT Raider and MT Orion carrying 3,000MT of DPK and 2,000 MT of AGO to the destination of the general area of Bakassi. ”Due to some mysterious reasons, NNS Okemini did not comply with Ref B. Consequently, the vessels disappeared ”unescorted,” the report stated.
The Flag Officer Commanding (FOC) East, Cdre VK Ombu (now a retired chief of Naval Staff), was directed to arrest the Nigerian Navy (NN) personnel involved and investigate the matter, he did not. Rather he arrested the vessels and left the personnel. The Navy Chief of Operation (COP), AOS Okoja recommended that the Chief of Naval Staff, Admiral Mike Akhigbe carry out full investigation ”in the interest of the security of this country, the good image of the Nigerian Navy and indeed that of the other security operatives involved in enforcing security in our maritime environment,” he stated.
The CNS, Rear Admiral Akhigbe in response to the memo directed that henceforth that all correspondence of the task force should be addressed to the Chief of Naval Staff for the attention of Director of Marine Services (D’MAR,) by- passing the Chief of Operations. This according to a Naval Officer is contrary the rank related (hierarchical) structure of the line of command and control of the military service. With the CNS directive, the COP now takes directive from the D’MAR instead of the reverse. The memo sent to the CNS by the D’ MAR, Capt NK Wyom, confirmed this.
Investigation revealed that the COP was seen as an obstacle and must be sidelined. Though with the new directive, reports kept coming to the office of the COP on the illegal diversion. In the month of November, seventeen vessels carrying 14,000MT of PMS, 22,600MT of AGO, 8,500MT of LPG (Liquefied Petroleum Gas) and 8,000MT of HHK were diverted to neighboring countries. In December, twelve vessels carrying 22,560MT of AGO were diverted.
Investigation revealed that between the month of June and December 1996, Nigeria lost a total of 202,130 Metric Tonnes of petroleum products to smuggling with the connivance of some Nigerian Navy personnel under the leadership of Rear Admiral Mike Akhigbe.
What is worrisome about these illegal diversions is the magnitude of the product involved and the fact that over 90% of the products were diverted abroad to Cotonou, Abidjan and Ghana by “unscrupulous operations.” According to the report, within six weeks about 15 vessels (10 vessels per month) disappeared undetected with such a large quantity of the nation’s wealth. What led to the arrest of seven vessels in August 1996 and which became the eye opener for the Naval Operations unit was the interception of a telex message sent to Ghana on one of the illegal transactions. The telex dated 23 August 1996, was a confirmation of the delivery of Gasoil MIN 2,000MT/MAX 2,500MT. It was addressed to one Mr. Cato Browne and Kwasi Amankonah-Hinneh. One Peter Tatam for Trasfigura Ltd. signed the vessel Amorex is owned by Trasfigura, loaded in Okrika.
Investigation showed that for every loading a manifest is sent to the office of the Chief of Naval Staff for proper monitoring and escort of the vessels from point of loading to destination. The manifest states the name of vessel, marketer’s account, quantity of product, source of product and loading signal.
Apart from the economic implication of disappearance of these products the greatest concern is on the security of the country. That within a period of six months about 79 vessels can disappear undetected with such a large quantity of the nation’s wealth constitute a serious security breach of the nation’s maritime security system and an embarrassment to the security operators concerned. And that what the Chief of Naval Staff then could do was to warn the arrested smugglers and release their vessels shows that there is to it than meets the eye.
At the Human Rights Violation Investigation Commission (HRVIC), headed by Justice Chukwudifu Oputa in 2001, Lt. Cdr. TO Esan, a retired mid-riff Naval Intelligence Officer alleged that Admiral Mike Akhigbe and some of his colleagues in the military and some civilians were responsible for the hardship Nigeria faced in 1996. He said that he was victimized and subsequently prematurely retired from active service at the age of 37 because of his resolve to fight against the illegal bunkering of petroleum product through the sea to the neighboring Benin Republic. He disclosed further that lot of economic crimes were committed against the country on the high sea by a group led by Admiral Akhigbe when he was the Chief of Naval Staff. According to him both the former Chief of Defence Staff, Admiral Ibrahim Ogohi and the immediate past Chief of Naval Staff, Vice Admiral Victor Ombu were at that period under Akhigbe as Flag Officers Commanding the Western and Eastern Naval Commands respectively.
AKHIGBE’S CO-CONSPIRATORS
In some of the reports of the COP, Rear Admiral AOS Okoja, the duo were mentioned severally for disregarding directives from the Chief of Operations and most of the laxity were placed at their doorsteps. For example in the case of the MT Raider and Orion, where Cdre Ombu FOC East was directed to arrest and investigate the Naval personnel involved in the illegal diversion, he was said to have arrested the vessels instead leaving the culprits and never investigated them. Even when he was asked to send the vessel to Lagos, he refused issuing a counter directive that the vessel be detained in Okemini. The FOC West then Cdre Ibrahim Ogohi was said not obey directives from the COP. And they cannot claim ignorance of these cases of illegal diversions. As FOCs it is within their Area of Responsibility (AOR). For the West, the harbors of Lagos, Warri and Sapele are within the AOR of the Command. This area, according to Naval sources stretches from Nigeria-Benin Border on Longitude 002 degree 40”E to a village called Sengana Long 006 degreeE, covering a coastline of 240 nautical miles. The Eastern Command has Port Harcourt, Calabar and Bakassi.
In line with the statutory roles of the Nigerian Navy, the commands are primarily tasked with the defense and policing of their AOR. Consequently the commands operational activities are focused on patrols for seaward defense and protection of resources, anti-smuggling and anti-illegal bunkering with internal security. Lt.Cdr. Esan stated in his petition that inhuman treatments were meted out to him by high ranking Naval Officers because he stood against their illegal bunkering business, he specifically mentioned Admiral Ogohi.
Naval sources disclosed that without the cooperation of FOCs no illegal bunkering can be successful. This according to him is because as Flag Officers Commanding, they exercise both operational and administrative controls over all units under their AOR and it was what they claim to see that is believed. That the two FOCs in 1996 can claim ignorance of the happenings within the AOR may not be tenable as copies of hand written signals of vessels loaded made available to WNT shows that what transpired then had their blessings or they deliberately did not know.
That Lt.Cdr. Esan was victimized by Admiral Ogohi is no news. The Chief of Defense Staff (CDS) is known for clamping down on suspected enemies using his exalted position to intimidate them. In July 2000, Tempo Magazine reported an alleged deduction in the payment of the relocation allowances for the Defense Headquarters (DHQ) officers and soldiers. This deduction affected non-commissioned officers from the rank of Private to Master Warrant Officers. When Private soldiers to Coporals were paid 8,000 Naira as against 25,000 Naira paid to their civilian counterparts, Sergeants to Master Warrant Officers got 12,800 against 40,000 Naira paid to their civilian counterparts.
After the publication of the story, some officers and some journalists were summoned to appear before a military panel set up by Admiral Ogohi, headed by an Air Force Officer, to investigate not the authenticity of the story but the source of the information to the press. Fellow journalists who are believed to be on the pay roll of the CDS spied upon the journalists summoned to the panel. These journalists, according to sources in the office of the CDS, carry out hatchet jobs for him. One of the journalists working in a government Newspaper lost her job, the other in an independent newspaper based in Lagos was redeployed to the State House in Abuja. One of the officers was posted to Lagos and the other retired prematurely on the ground that they leaked the information to the press.
Investigation revealed that what makes it difficult to detect or identify vessels used for illegal bunkering is that their loading also appears on the official manifest but they are actually meant for outside the country. What is not clear is the level of complicity of the marketers in the dirty deal. Evidence shows that vessels are loaded on marketers’ account for a destination, but they did not get to the said destination.
THE STELLA ODUAH’S CONNECTION
In some cases, what appear as loading for delivery at the escravos is not actually meant for the place, an impeccable source disclosed that it was meant for smuggling using the companies as a front. This may have prompted a letter written to Mobil, National oil and Sea Petroleum and Gas in August 1996. At this time Stella Oduah was the CEO of Sea Petroleum and Gas. The letter asked them to explain the whereabouts of vessels loaded in their name but never reached them. Naval personnel who once served in the Warri jetty disclosed to us that a certain vessel MT AINAZI is noted for smuggling of fuel.
Other vessels noted for such nefarious activity are MT Seaways and MT Princess. These two vessels are vessels in the fleet of Sea Petroleum and Gas. Our source disclosed that the frequency of ship loading enjoyed by vessels belonging to Sea Petroleum and Gas was higher than that of other vessels. The Oil Company was also linked to Admiral Akhigbe. Though there is no physical evidence to prove that the company belongs to him sources say that MT Princess is named after one of Akhigbe’s daughter. We gathered that Akhigbe floated Sea Petroleum and Gas using Stella Oduah as a front. Apart from the escavros on the high sea, Famak filling station at Igbokoda in the waterside area of Ondo State is another dumping site for the smugglers. Our source disclosed that it is not possible for a vessel loaded with about 2,000 MT of fuel to get to Igbokoda because it is a shallow channel. According to him, Igbokoda is a decoy. ‘It only appears on the signal and manifest but the vessel is always diverted to another place,” he said. The owner of the filling station, according to investigation lives in Sapele, Delta State. Westminster Dredging, at Apapa in Lagos is another place where the smugglers dislodge before they transfer their goods to outside the country.
While attention was focused on tankers being driven across the border to neighboring countries, the real smugglers were having swell time on the high sea transferring the nation’s wealth and plunging the rest of the country into serious hardship. It was reliably gathered that what was lost within the period of June and December 1996 was more than what was discovered. While Okoja thought he was doing his job for his country and the Nigerian Navy, it was a disservice to Akhigbe and his co-travelers in the petroleum product smuggling business.
Though Admiral Ogohi is said to be vindictive, his is a child play to Admiral Akhigbe’s. Not a few can testify to his vindictiveness. The list is endless. According to some naval personnel, officers and ratings, his tenure was the worst. He was the most unpopular Chief of Naval Staff the Navy ever had. It was that bad that he could not attend his pull out ceremony. For fear of being embarrassed by those he had been bad to. The pullout ceremony is the most honorable one for a Service Chief. It has never happened in the history of Nigerian military that a former Service Chief was unavoidably absent on his pullout ceremony.
THE DELIBITATED NIGERIAN NAVY
Sources disclosed that it was in his time that the Nigerian Navy fortune dwindled. While the Navy under him plunged the nation into the fuel crisis of 1996, the Navy was also not taken care of. Money meant for the lubrication and servicing of the ships was diverted to private pockets. That left the Nigerian Navy ship in sorry conditions. The then Minister of State Navy, Mrs. Dupe Adelaja was shocked at the sight of 15 ships grounded when she visited the Naval base Lagos, shortly after she became Minister of State Defence in 1999. The Petroleum Trust Fund (PTF) money released to the Armed Forces did not get to the Navy. It was not that the PTF did not give the Navy but nobody can explain how it was spent and for who. The fund was a relief package for military personnel, but nobody in the navy enjoyed it.
There are six offshore platforms in Nigeria, serving as large capacity storage tanks for crude oil before pumping same through a network of pipelines into tankers or vessels for export. If we add the value of constructing the six terminals, the value of other offshore and coastal installations, we are talking of multi-million Naira investments. The Nigerian Navy has failed to effectively protect these platforms. Its personnel have helped in sabotaging them. They have assisted in getting this wealth stolen. Nigerian waters are richly endowed with various species of fish and shrimps. This has resulted in the increase in number of fishing trawlers engaged fishing in the nation’s territorial waters and Exclusive Economic Zone (EEZ), but the problem of uncontrolled fishing through negligence of the Nigerian Navy has denied the country huge resources through over-fishing. Investigations revealed that some naval personnel on patrol on the high sea rather than arrest the saboteurs they share from the stolen fish and shrimps. These men according to sources have completely abandoned their primary assignment of policing the territorial waters of the country for aiding and abetting smugglers and pirates. Though some are arrested, these are those who are not ”accredited.”
Maritime industry thrives in an enabling environment with all vital maritime safety and protections put in place. This is the Nigerian Navy’s role, unfortunately it has not been able to do this well. No nation would spare any resources in the protection of its territory, because that is where the bulk of the nation’s wealth is derived. An attempt to equip the Navy was first demonstrated during the Second Republic of Alhaji Shehu Shagari with the acquisition of NNS Aradu, a MERO 360 multi-purpose type of Frigate to fortify the fleet of the service. The ship bought in the 80s said to have cost $350 Million, but sources claim it was actually $250 Million. Aradu, meaning “Thunder,” today cannot strike any force of thunder on target.
Investigations revealed that the Nigerian Navy was deliberately neglected for the period from 1994 to 1998. Former Minister of State Defese, Dupe Adelaja, noted the dilapidated state of the service. We reliably gathered that the Navy was left unattended to during that period to ensure non interruption of the smuggling. A source disclosed that a recommendation was made that the the Navy should install radar in Lekki Peninsula and Bakassi Peninsula. This recommendation, according to our source, never got to General Sani Abacha, the Commander-in Chief then. To date it is not certain if the Nigerian Navy has installed the two radars. Inside sources disclosed that the presence of the radar will disrupt the smuggling activities.
THE VINDICTIVE AKHIGBE
Apart from the sorry condition of the naval ships, officers and ratings were not taken care of. Rather than better the lot of his officers and men, he got most of them dismissed or retired compulsorily. Rear Admiral AOS Okoja, his course mate at the NDA and Rear Admiral Peter Eluma are some of his casualties. Cdre. Oka, Capt. Labinjo and Lt. Cdr. Ibe Lambert will not forget Akhigbe in a hurry. Between 1998 and 1999 Oka was placed under close arrest over property. According to sources, Oka was the head of a task force in Port Harcourt and where he lived then was the property of the River State government, the Navy used it. When the River State government recovered the property back from the Navy, it was sold to Oka. Akhigbe wanted the house, Oka refused to sell it and that was the beginning of Oka’s problem with him.
| PPMC REF NO
|
MARKETER’S ACCT. | QTY/TYPE OF PRODUCT | SOURCE OF PRODUCT | DESTINATION
|
CARRIER/
VESSEL |
|||||
| PPMC/SD.62 03/06/96 | AP | 3470MT DPK | PHRC | Development facility | MT OGBIA | |||||
| PPMC/SD.62
06/06/96 |
AP | 5000 MT AGO | PHRC | SHELL | MT CEDARS | |||||
| PPMC/SD.62
20/06/96 |
AP | 6000 MT AGO | WRPC | WILBROS | MT ASHLEIGH | |||||
| PPMC/SD.62
06/06/96 |
TEXACO | 750 MT AGO | PHRC | TOPCON | MT STRONGHAND | |||||
| PPMC/SD.62
12/06/96 |
AP | 2500 MT AGO | WRPC | SHELL/TOPCON/ASHLAND | MT AMOREX | |||||
| PPMC/SD.62
11/06/96 |
AP | 2500 MT AGO | WRPC | SHELL/TOPCON/ASHLAND | MT CHRISTINE | |||||
| PPMC/SD.62
19/07/96 |
AP | 2000 MT DPK | PHRC | ALSCON IKOT ABASI | MT POSSIDONIA | |||||
| PPMC/SD.62
18/07/96 |
AP | 4500 MT AGO | PHRC | ASHLAND ANTAM JETTY | MT ADU | |||||
| PPMC/SD.62
19/07/96 |
AP | 2000 MT DPK | PHRC | ALSCON IKOT ABASI | MT ARISTIDE | |||||
| PPMC/SD.62
18/07/96 |
AP | 2500 MT AGO | PHRC | BP STATOIL P/H | MT OCEAN A | |||||
| PPMC/SD.62
11/07/96 |
AP | 2000 MT AGO | PHRC | ALSCON IKOT ABASI
(BAWO VENTURES) |
MT CORNILIA | |||||
| PPMC/SD.62
26/06/96 |
AP | 3500 MT AGO | PHRC | ALSCON IKOT ABASI
(WHANJ LTD) |
MT MARIE | |||||
| PPMC/SD.62
26/06/96 |
AP | 3000 MT AGO | PHRC | ALSCON IKOT ABASI
(ANSA MERCH. LTD) |
MT RENO | |||||
| PPMC/SD.62
11/07/96 |
SEA PETROLEUM | 6300 MT AGO | PHRC | CHEVRON ESCRAVOS | MT DOLPHIN V | |||||
| PPMC/SD.62
11/07/96 |
SEA PETROLEUM | 3000 MT AGO | PHRC | CHEVRON (ROBERTS KIRI) | MT MOR BLESSING | |||||
| PPMC/SD.62
15/07/96 |
MOBIL | 5000MT AGO | PHRC | MPN RIGS TRIDENT IV | MY VITA THERESA | |||||
NUMBER OF VESSELS – 16
QUANTITY – AGO – 54,550 MT
DPK – 7,470 MT
PERIOD: 03 JUN- 19 JUL 96
This is just a month, out of the six months, I have the remaining table. In all Nigeria lost 122,060MT of AGO, 26,670MT of DPK and 39, 800MT of PMS to illegal bunkering and smuggling. That is, from June to December 1966 running into Billions of Naira.
MISSING VESSELS FOR THE MONTH OF SEPTEMBER 1996
| NHQ/PPMC REF NOS | MARKETERS ACCOUNT | QTY/TYPE OF PRODUCT | SOURCE OF PRODUCT | LOADING SIGNAL | DESTINATION | VESSELS | ||||||||
| NHQ 121611 SEP SRC B PPMC/SD/62 DATED 10 SEP | AP | 400MT AGO | WRPC | UMA 191301 SEP | TOPCON WARRI | MT NEW ERA 1 | ||||||||
| NHQ 12612 SEP SRC G PPMC/SD/62 DATED 10 SEP | MOBIL | 2000MT AGO | PHRC | OKE 1201005 SEP | MOBIL DEPOT CALABAR | MY N. NAVIGATOR | ||||||||
| NHQ 12612 SEP SRC H PPMC/SD/62 DATED 10 SEP | MOBIL | 4,500MT AGO | PHRC | OKE 201005 SEP | MPN RIS TRIDENT IV | MY VITA THERSA | ||||||||
| NHQ 131336 SEP PPMC/SD/62 DATED 12 SEP | OBAT | 2,000MT DPK | PHRC | OKE 301420 SEP | IGBOKODA ONDO | MT SEA STAR | ||||||||
| NHQ 191402 SEP SRC B PPMC/SD/62 DATED 17 SEP |
AP |
3000 MT AGO |
WRPC |
UMA 281500 SEP |
SHELL PH BP STATOIL |
MT ZONO |
To be continued……
Africanreporter 
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